The phone hacking scandal will have no impact on News Corporation’s attempted
takeover of satellite broadcaster BSkyB, a cabinet minister has said.

Danny Alexander, the Chief Secretary to the Treasury, rejected calls to postpone any decision about the takeover until the end of a police inquiry into phone hacking at the News of the World, which is owned by News Corporation.

He described the hacking “a very serious scandal” and said the police investigation “must go forward”. He insisted, however, that the decision about the takeover was “completely separate.”

"It's outrageous that people have had their voicemails hacked into, seemingly a large number of people,” he told the BBC’s Andrew Marr Show.

“That’s not something that could be acceptable in any set of circumstances."

The News of the World yesterday printed an apology to victims who have had their voicemail intercepted. The apology states: "Here today, we publicly and unreservedly apologise to all such individuals." It added that the hacking "should not have happened" and "was and remains unacceptable".

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Boris Johnston, the Mayor of London, said that there should be a “truth and reconciliation commission” where editors could come forward and declare whether they know of phone hacking activities by their own staff.

He said: “What I would like to see is the entire newspaper industry - what we used to call Fleet Street - have a general truth and reconciliation commission about all this. That's what we need to have.

“I think all the editors and all the proprietors should come forward, put their hands up, and say whether they know of any of their reporters or employees who may or may not have been into these practises which have been exposed at the News of the World.”

The News of the World’s owner has admitted there were at least eight victims and has put aside £20m for compensation. The paper said a number of individuals had brought breach of privacy claims against it over wrongful "voicemail interceptions" between 2004 and 2006, and others were threatening to do so.

It’s apology states: “ "Evidence has recently come to light which supports some of these claims. We have written to relevant individuals to admit liability in these civil cases and to apologise unreservedly, and will do the same to any other individuals where evidence shows their claims to be justifiable.

"We hope to be able to pay appropriate compensation to all these individuals, and have asked our lawyers to set up a compensation scheme to deal with genuine claims fairly and efficiently."

Andy Gray, and Joan Hammell, a former aide to ex-Deputy Prime Minister Lord Prescott.There are 24 active claims against the paper being heard by High Court judge Mr Justice Vos.

Last week Neville Thurlbeck, the News of the World’s chief reporter, and Ian Edmondson, a former assistant editor who was recently sacked over the affair, were questioned by police on suspicion of having unlawfully intercepted voicemail messages.

They were subsequently released on bail until September.

Mark Thomson, Sienna Miller’s solicitor, said he expected “hundreds” of claimants to emerge following the apology by the News of the World.

He said: “This is not a little error, this is systematic, deliberate surveillance on an enormous scale. It is an outrageous breach of privacy.”